what percentage of your income should be rent or the mortgage?

Answer 1

25% of your "net" income is considered ideal, because it leaves plenty left over for other things.

35% of your net income is the highest you should go.

Answer 2

There is no specific percentage that I know of. It all depends on how much you make in income and where you live. I would not be comfortable with my rent being more than 50% of my net.

Answer 3

It's easy for some here to say 25% of your net, however, it's the rare bird that call pull that off in the Northeast where I live.

Yes, I am a Realtor and a former loan officer. But anyone that's read my prior posts will know I'm not saying this just to sell you on buying more.

Answer 4

Honestly, I can do loans that do a 60% dti (debt to income) of pre taxed income.. I dont really like to see that tho...

It really would be better if you can keep it at about 35% of pretax income.

I'm one of the house poor right now, I'm stretched thiner then I want to be I've often thought about buying a ultra cheap house in a cheap part of the country.

In many of the "millionaire mind" type CD's they say to have a cheap affordable house and invest the rest of your income

I agree!

Answer 5

Between 20-25%. Bankers, Realtors, etc. will often times try to get you to go more, but you need to stick to your guns. Many people in this country are house poor and end up never really owning anything as they are living above their means.

Answer 6

i was always told 7-10 % by relatives and friends

Answer 7

try this affordability calculator, http://www.choicefinance.net/calculators/affordability-calculator.php